Bitcoin Analysis for 25.04.2018

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The likely next president of the Federal Reserve Bank in New York said that the cryptocurrency "does not pass the basic test of what the currency should be". John Williams, who is the current head of the Federal Reserve Bank of San Francisco, said the currency should be "something like a value-added asset".

He added that currencies must be flexible to support various economic and financial conditions. Williams also expressed concern about the problems of illegal activity in the cryptographic community.

According to Williams, "the configuration or institutional layout around Bitcoin and other cryptocurrencies, above all, have problems with fraud, money laundering problems, terror financing and many other problems.The idea of supplying the currency and thinking about money belongs to the sphere of government and central banks. In my opinion, this is more a promise of technology."

Williams, who spent the majority of his career in central banking, admitted freely that he was "very prejudiced" to cryptocurrencies. He is most likely to replace William Dudley on the post of the head of the New York Federal Reserve Bank in June.

Among 12 regional federal banks in the US Federal Reserve System, the Federal Reserve Bank in New York and its president are considered the most important. It is the largest by asset and the most active in terms of volume.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The bulls have managed to rally the market towards the 61% Fibo at the level of $9,607 and the Dark Cloud Cover candlestick pattern emerged on the H4 time frame chart at this level. It might indicate a temporary pullback towards one of the technical support levels seen at $9,126 and $8,986. Moreover, the upward move looks like a typical wave three development with a visible bearish divergence between the price and momentum indicator, so the chance for a slide down and now high.